Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How Do You Answer Income Questions Once Retired?
Old 11-21-2016, 05:39 PM   #1
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 734
How Do You Answer Income Questions Once Retired?

I Have a question for the very knowledgeable folks on this forum regarding how you answer Income questions from various sources (e.g. Credit card applications for new credit, increase in credit card lines of credit on existing accounts, car loan applications, mortgage applications). To give a live example, DH and I receive 1 pension, 2 Social Security monthly payments, and 1 VA disability payment. We have taxable accounts that throw off dividends and interest as well as periodic capital gains, none of which we withdraw from taxable accounts. We also have 2 large IRA's which also generate interest and dividends but which are reinvested. Starting in 2017 however, DH starts RMD's. In 2019, I start RMD's.

So for example in 2016 if completing an app which requests income, would you answer the question as a total of all pensions, SS payments, VA disability payments plus taxable account interest dividends? What about capital gains. And for 2017, would you include the same items as in 2016 plus RMD's for DH and exclude interest and dividends in both IRA's?
__________________

__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-21-2016, 05:42 PM   #2
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,418
I use the AGI or taxable income from our most recent tax return.
__________________

__________________
MichaelB is offline   Reply With Quote
Old 11-21-2016, 05:43 PM   #3
Moderator Emeritus
aja8888's Avatar
 
Join Date: Apr 2011
Location: The Woodlands, TX
Posts: 7,142
I add up all my income sources and just put in the number. Income in tax deferred accounts I don't count, only income subject to taxes or reporting.

RMD income is income subject to reporting and paying tax on.
__________________
......."Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson.
aja8888 is offline   Reply With Quote
Old 11-21-2016, 05:54 PM   #4
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,829
Quote:
Originally Posted by Golden sunsets View Post
I Have a question for the very knowledgeable folks on this forum regarding how you answer Income questions from various sources (e.g. Credit card applications for new credit, increase in credit card lines of credit on existing accounts, car loan applications, mortgage applications).
I can understand your dilemma!

Personally, in my 8th year of retirement I still haven't been in your situation, to tell the truth. TBH I don't ever want another mortgage, car loan, line of credit, or whatever.

I DID apply for one credit card finally, in 2014, just to do something off the wall I guess. Got to try different things in life to stay young. Anyway on that application, IIRC all they wanted was my AGI for the previous year or so. Simple.

When I bought my Dream Home in cash, I showed my real estate man a statement from Vanguard shortly after submitting the offer. He never asked for it but I felt that was the courteous thing to do.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 11-21-2016, 05:56 PM   #5
gone traveling
 
Join Date: Sep 2013
Posts: 1,248
Dividend Yield + interest + SS + pensions is a number in my head. It may be wrong
__________________
eta2020 is offline   Reply With Quote
Old 11-21-2016, 06:00 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 1,653
Quote:
Originally Posted by Golden sunsets View Post
(e.g. Credit card applications for new credit, increase in credit card lines of credit on existing accounts, car loan applications, mortgage applications).
Guess I'm an odd ball. SS is a ways off, no pensions and RMD is also way off. I just thought I'd not need to do any of these. I could I guess potentially see a mortgage.. maybe.

Maybe I should think about this.
__________________
bingybear is offline   Reply With Quote
Old 11-21-2016, 06:06 PM   #7
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,372
Our credit card companies keep asking us to update our income so they can invite us to apply more cards, they say. Umm, no, no income updates from us, no invitations to apply for CCs wanted from them. Our credit lines are quite ample already.

If we wanted to borrow money (or wanted more credit cards), we would consider income to be what we reported on April 15.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 11-21-2016, 06:09 PM   #8
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 2,471
I use SS, interest and dividends.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 11-21-2016, 06:43 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,587
Quote:
Originally Posted by MichaelB View Post
I use the AGI or taxable income from our most recent tax return.
+1
Simple
__________________
braumeister is online now   Reply With Quote
Old 11-21-2016, 06:59 PM   #10
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,045
Add them up and double (or triple) it. A mortgage company will want verification, so you have to be spot on. All the others are generally on the honor system.

Generally a higher income is better for what you are applying for... Give them a higher income. They cannot verify it without your knowledge.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 11-21-2016, 07:00 PM   #11
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,084
I had to show income earlier this year when leasing a house in the UK so I simply provided proof of my 2 US pensions knowing that would be sufficient. If I needed to show higher income I would add in Dividends and Interest from the previous year.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 11-21-2016, 09:00 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,410
Similar problem here except no pension (until just recently) and no SS yet. I use tax return income, which includes taxable account interest and dividends, capital gains and pension (which are Roth conversions).... while I would concede that Roth conversions are just moving money from the right pocket to the left pocket (or is it the other way around?), the U.S. government considers it to be income.... so who am I to argue with them?

At least if someone asks I have a reasonable basis for what I am telling them and can even show them the numbers from my prior tax returns if they want it.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 11-21-2016, 09:10 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,457
Quote:
Originally Posted by MichaelB View Post
I use the AGI or taxable income from our most recent tax return.
Exactly!

And that's what you can back up with your tax docs if you ever have to "prove" it like for a mortgage.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 11-21-2016, 09:14 PM   #14
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,084
Quote:
Originally Posted by audreyh1 View Post
Exactly!

And that's what you can back up with your tax docs if you ever have to "prove" it like for a mortgage.
We are currently in the process of buying a house, for cash, and had to produce current brokerage statements to prove we had the funds to buy the house. I also provided pension statements to show that we also had other income streams.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 11-21-2016, 09:21 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,904
Just make up a number, they won't check.
__________________
Fermion is offline   Reply With Quote
Old 11-21-2016, 09:24 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,357
The instructions with most credit card applications state you should include only income you wish them to consider for repayment purposes.
__________________
GrayHare is online now   Reply With Quote
Old 11-21-2016, 10:19 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
$40,000. That's what I usually say. It's about what we spend and about what I'm targeting for my AGI each year, so I can back it up with tax forms. Don't put a lot of thought into it beyond that.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 11-21-2016, 10:37 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,396
Income Loan? I don't need no stinkin' income loan.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 11-21-2016, 10:39 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by MichaelB View Post
I use the AGI or taxable income from our most recent tax return.
There ya go......... No need to make it more complicated than it is. I believe MichaelB's method would work well for most scenarios.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 11-21-2016, 10:43 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by Alan View Post
We are currently in the process of buying a house, for cash, and had to produce current brokerage statements to prove we had the funds to buy the house. I also provided pension statements to show that we also had other income streams.
Was this early in the process Alan? It seems like if you had already made an offer and it was accepted, you could just give them a check in lieu of proving you'd be able to give them a check later. Or was it a case where the seller still had some loops to jump through and you didn't want to give them a check until seller completed their to-do's?
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ACA help (MD) - how to answer income questions eyeonFI Health and Early Retirement 14 12-28-2015 07:35 AM
does contributing to HSA make sense once retired? jabbahop Health and Early Retirement 28 04-27-2015 12:48 PM
Some Important Questions to Answer Before Asking - Can I Retire? Gumby Early Retirement FAQs 0 01-05-2014 06:55 PM
Did your charitable contributions change once you retired? pb4uski FIRE and Money 28 12-04-2012 06:22 PM
How to answer questions. ???With a question or assignment????? dex Forum Admin 2 02-25-2007 08:56 AM

 

 
All times are GMT -6. The time now is 10:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.